ILWU and PMA Reach Agreement Ending Port Dispute

FINALLY!  A tentative five year agreement has been reached between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA).  The tentative 5 year agreement was reached on, February 20, 2015 and signals the end of a nine month bargaining process between the two agencies.  The agreement must now be ratified by the memberships of the ILWU and PMA.

There is still a serious backlog of containers in port and vessels waiting to port.  The ILWU and PMA have both stated that they are committed to clearing the backlog as soon as possible – Oakland is projecting six to eight weeks are needed to recover fully.

Aside from clearing up the backlog, there may be longer lasting effects from this work stoppage. Shipping rates from Asia to the West Coast have gone up sharply, and mistrust of the West Coast ports may lead to increased use of East Coast and Gulf Ports.

If you would like additional information on how this may affect your freight or if you have any other supply chain questions, please contact Allyn at (239) 489-9900 or you can email us at sales@allynintl.com.